Autumn Budget 2025: Key Energy and Housing Announcements
In case you missed it, on Wednesday 26th November Chancellor Rachel Reeves delivered her second annual Autumn Budget. She outlined changes to tax, benefits, and public spending across multiple sectors.
Our hopes for this year’s Budget were the same as last year. As a business delivering free home energy visits, we see first-hand the impact that rising energy costs has on residents in our community. Many are facing the impossible choice between heating and eating this winter. We still want to see stronger support for vulnerable households, as well as more funding for energy efficiency and better investment in renewable energy. These things are just as important now as they were then. Last year, our Director Sarah got the opportunity to speak about this on BBC Two’s Politics Live, highlighting how fuel poverty has more than doubled since 2020. One year on, we remain committed to speaking up for the people and families who need help the most, as well as those who miss out on support but are still struggling to get by.
As a team working across both the energy and housing sectors, supporting businesses, social landlords, and residents, we’re here to break down what the Autumn Budget means for energy bills, the future of electric vehicles, and the government’s clean energy plans to reach net zero. We’ve also summarised the key housing updates that impact landlords and developers. But first, what actually is the budget and why is it important?
What’s the Annual Budget All About?
In short, it’s the government’s financial plan for the year ahead. The budget explains how they’ll spend the nation’s finances and make any changes to taxation. This is necessary as most of the government’s income comes from taxes paid by people and businesses, which fund services like hospitals, schools, the military, and police.
Here’s our full breakdown:
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Energy Bills: Key Announcements and Changes
In her speech, the Chancellor acknowledged the ongoing pressure that high energy prices are placing on households and businesses. She stated that the aim of this year’s Budget is to ease the cost of living by cutting average energy bills by around £150 from April 2026. To further support those most affected by fuel poverty, the government has also committed an additional £1.5 billion to the Warm Homes Plan, on top of the £13.2 billion already allocated.
Warm Home Discount Expansion
The government has extended the Warm Home Discount to reach an extra 3 million of the poorest households, bringing the total number of households supported to 6 million. Each eligible household will receive £150 off their energy bills this winter.
Winter Fuel Payments
The £35,000 income threshold for the Winter Fuel Payment will remain in place for the rest of this Parliament. This means that over 9 million pensioners will continue to receive a one-off payment of £200 or £300 to help with energy costs during the winter.
Energy Company Obligation (ECO) and Renewables Obligation (RO)
The Energy Company Obligation (ECO) is a scheme that currently supports low-income and vulnerable households with measures like insulation and heating upgrades. Energy suppliers currently add a charge to energy bills to fund the scheme, which the government says costs the average household around £59 per year. The Chancellor confirmed that ECO will end after March 2026.
Along with this, it was also confirmed that 75% of the cost of the Renewables Obligation (RO), which is another charge (around £88) included in energy bills to support older renewable energy projects, will be covered by the government instead of households, starting from April 2026 for three years.
That’s where the £150 figure comes from. By removing ECO from bills and covering most of the RO cost, the government expects to save the average household around £150 a year.
Business Energy Prices
From April 2026, the government will increase support for businesses through the British Industry Supercharger Scheme. From April 2027, the government will introduce a new programme called the British Industrial Competitiveness Scheme. These measures aim to ease the pressure on business energy bills by reducing some of the extra charges currently built into them, such as levies that fund older renewable energy projects.
Electric Vehicles: Grants and Infrastructure
Electric Vehicle Excise Duty (eVED)
From April 2028, electric and plug-in hybrid car drivers will pay a new Electric Vehicle Excise Duty (eVED), which is a mileage charge of 3p per mile for battery electric cars and 1.5p per mile for plug-in hybrids. It’s being introduced to make sure EV drivers contribute fairly to the cost of roads. Right now, the government raises money from drivers through fuel duty and Vehicle Excise Duty, but as more people switch to EVs and stop paying at the pump, that income is falling. The Office for Budget Responsibility expects fuel duty revenue to halve by the 2030s and nearly disappear by 2050. To keep EVs affordable, the government says the new charge will be about half the fuel duty paid by petrol and diesel drivers, with plug-in hybrids paying even less.
Funding for Local Authorities
Local authorities and public bodies will receive £100 million to accelerate the roll out of public EV charge points. This includes hiring and training staff to speed up installations.
Extra Investment in EV Charging Infrastructure
A further £100 million is being invested to expand EV charging infrastructure, including to support the installation of home and workplace charge points, making charging more accessible and reliable for everyone.
10-Year Business Rates Relief
The government is introducing a 10‑year, 100% business rates relief for EV‑only forecourts and EV charge points that are separately assessed by the Valuation Office Agency. This aims reduce costs for operators to encourage more investment in charging infrastructure.
Extended Tax Relief
Businesses will continue to benefit from 100% first-year allowances (FYA) on qualifying zero-emission vehicles and EV charging equipment, making it easier for them to invest in electric fleets or charging points.
Plug-in Hybrid Company Car Tax Break
A temporary benefit-in-kind tax easement has been introduced for plug-in hybrid electric vehicles in the Benefit in Kind system to stop tax bills from rising sharply due to new emissions standards. This easement will run until April 2028.
Electric Car Grant Extended
The Electric Car Grant, which gives up to £3,750 off eligible EV models, has already helped more than 35,000 drivers make the switch to electric since July. The scheme has now been boosted by £1.3 billion in extra funding and will run until 2030.
Cross-Pavement EV Charging
The government is launching a Department for Transport consultation on new permitted development rights for cross-pavement EV charging. This aims to make it quicker and cheaper for households without driveways to install chargers. It also builds on the £25 million already committed to help councils provide discreet, on-street charging options, expanding access for people in flats or terraced housing.
Review of Public Charging Costs
The government has committed to reviewing why public charging is so expensive. They’ll look at energy prices, wider cost contributors, and options for lowering these costs for consumers. With a report expected in late 2026, the aim is to make public charging more affordable for everyone.
Clean Energy and Climate Action
Another key focus in the Chancellors speech was their commitment to strengthening the UK’s long-term energy security. She outlined plans to make clean energy more affordable and to expand nuclear power, supporting both long-term economic growth and the UK’s transition to net zero.
Nuclear Power Investments
The government has committed over £120 billion in additional departmental capital spending during this Parliament, helping to fund growth priorities like new nuclear projects. As part of this, they will continue identifying potential sites for large-scale nuclear power. This builds on recent progress, including £14 billion in funding for Sizewell C, which reached financial close in November and has now moved into full-scale construction. Once complete, it’s expected to help power over 6 million homes.
Clean Energy Jobs Plan
To support its clean energy superpower mission, the government published its Clean Energy Jobs Plan in October, outlining plans to create a new generation of jobs and strengthen energy security. This includes the UK’s first small modular nuclear reactor at Wylfa in Anglesey, North Wales, which will create up to 3,000 local jobs. Overall, Wales is set to benefit from up to 20,000 clean energy jobs by 2030.
Kernow Industrial Growth Fund
As part of the Budget, the government has announced a £30 million Kernow Industrial Growth Fund to invest in Cornwall’s key strengths including critical minerals, renewable energy, and marine innovation.
Offshore Oil and Gas Licensing
The government’s new North Sea Future Plan will allow existing oil and gas fields to continue operating but will end new exploration licences. It also aims to protect existing jobs and create new ones in clean energy, manufacturing and defence.
Oil and Gas Price Mechanism (OGPM)
The government will replace the temporary Energy Profits Levy with a new Oil and Gas Price Mechanism (OGPM), which will apply a 35% tax on profits only when oil and gas prices are unusually high. The government plans to roll this out in 2030, or earlier if prices drop. The idea is to make the system more stable, support long-term energy supply, and help protect people from sudden price hikes.
Climate Change Levy (CCL)
From Spring 2026, certain energy uses like hydrogen production will be exempt from the Climate Change Levy to support cleaner industries. From April 2027, most CCL rates will rise slightly with inflation. The main rate for liquefied petroleum gas will stay frozen. These changes aim to encourage low-carbon manufacturing and energy efficiency.
Reinvesting Water Company Fines
Over the next two years the government is investing £29 million, based on fines and penalties collected from water companies since October 2023, into projects to clean up our rivers, lakes and seas.
Housing and Property: Key Sector Updates
Housing Benefit Changes
From Autumn 2026, the government will change how it treats earnings for Housing Benefit and Universal Credit claimants in supported housing or temporary accommodation. This change aims to reduce the “cliff edge” that discourages people from working more, helping more residents move into employment without losing vital support.
New ‘Mansion Tax’
From April 2028, a new High Value Council Tax Surcharge on owners of residential properties valued at over £2 million is being introduced in England. Charges will range from £2,500 to £7,500 a year depending on the property’s value, with rates rising annually with inflation. This money will go to central government instead of the local authority. The aim is to make council tax fairer by ensuring that luxury properties pay more than average homes.
Landlord Tax Rates to Rise
From April 2027, landlords across England, Wales and Northern Ireland will see a 2% increase in property income tax. New rates will be 22% (basic), 42% (higher), and 47% (additional). This could lead to some landlords increasing rents to cover the extra cost. Others may choose to exit the market entirely, particularly those with smaller portfolios.
Investment in Local Housing and Regeneration
The government is investing £902 million in housing and regeneration across 11 mayoral city regions in the North and Midlands, plus £783 million for similar projects in Scotland, Wales and Northern Ireland. An additional £1.3 billion from the National Housing Delivery Fund will be devolved to seven English regions to unlock complex housing and infrastructure schemes. This gives local leaders more power to invest where it’s needed most.
A Local Boost for Peterborough
Growth Mission Fund
And some exciting local news for us at Green Energy Switch. As part of the Growth Mission Fund, the government has allocated £20 million to construct a new sports quarter in Peterborough. The Regional Fitness and Swimming Centre closed in 2024 and was demolished earlier this year, making this great news for our local community. It will bring new jobs, family-friendly activities, and become a brilliant new feature for the city. Read the full story here.
Looking Ahead: What We’d Like to See Next
Even though the steps outlined to reduce energy bills will be welcome news for many, the Energy Saving Trust has voiced concern that this Budget could “result in a significant reduction of the funding available to permanently lower bills and make homes warmer… putting fuel poverty and climate targets at risk”. They’re now urgently calling on the government to publish its Warm Homes Plan, clearly setting out how it will deliver large-scale home upgrades and help the UK reach its net zero goals.
We’d still like the government to increase the Warm Homes Discount and expand eligibility to cover more struggling households. Many people fall through the cracks, and immediate help is essential as living costs continue to rise and with winter almost upon us.
How We Can Help: Green Energy Solutions for You
Whether you’re a resident, business, or social landlord, we offer a range of energy and money saving services, most of them completely free. With the 2025 Autumn Budget focusing on rising energy bills, clean energy investment, and support for decarbonisation, now’s the perfect time to see how we can help you cut costs, reduce emissions, and futureproof your property or business.
Residents: Get help with rising energy bills
Free Home Energy Visits (LEAP)
If you’re a homeowner or tenant on a low income or receiving means-tested benefits, you could be eligible for a free home energy visit through our award-winning LEAP service. Receive tailored advice, get free energy‑saving measures (like LED bulbs or draught‑proofing), and access appliance or boiler schemes
See if you’re eligible and book your visit today
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Businesses: Lower your costs and go green
Workplace EV Charger Installation (Fully Funded)
Fully funded EV charger installation with no upfront costs. Ideal for businesses wanting to take advantage of the government’s current incentives.
Green Business Energy Tariff Comparison
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Social Landlords: Streamline your energy management
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ABOUT US
Green Energy Switch (GES) delivers a broad range of energy services across the UK. We specialise in working with social landlords and local authorities. Established in 2006, GES is a subsidiary of environmental charity PECT. We gift-aid any profits to PECT to help fund their vital work. In doing so, we are the lead sponsor of their Forest project. Over 131,000 trees have been planted so far, equating to a remarkable reduction of over 1,300 tonnes of carbon emission.
